Request for help with calculation of Accounts Receivable Collection period and Accounts Payable Payment Period based on the details mentioned in the question attached Given the following Income Statement & Financial Position of Anne York, a sole trader whostarted the business of buying and selling furniture in BrightonAnne York1st of October 2021Balance SheetOctober 31, 2021Anne YorkAssetsIncome StatementCurrent Assets:For the Month Ended October 31, 2021Bank9,230Sales Revenue5,600Cash6,140Cost of Goods Sold4,830Accounts Receivable150Gross Profit770Inventory320Operating Expenses:Керair ExpenseWages ExpenseRent ExpenseTotal Current Assets15,840110820Property Plant & Equipment:850Flat45,000Hotel Expense1,200Car12,000Total Operating Expenses2,980Computer800Income/ (Loss)-f2,210Printer200Other Income:Laptop1,700£ 59,700Rent Revenue800Total Assets75,540Net Income/ (Loss)|-£1,410Liabilities and Owner's EquityCurrent Liabilities:Accounts Payable5,150Owner's Equity:Anne York, Capital£ 70,390Total Liabilities and Owner's Equity75,540Also given the jounal entryAnne YorkJournal EntriesDateAccounts TitleDebitCreditOct 1Bank£ 10,000Cash4,800Flat45,000Car12,000Anne York, Capital71,800(To record capital contributed in the business)InventoryAccounts PayableOct 25,4005,400(To record furniture purchased on account)Oct 4Computer800Printer200Bank1,000(To record computer and printer purchased)Oct 5Bank2,800Sales Revenue2,800(To record sales revenue earned in cash)Oct 12 Repair Expense110Cash£110(To record repair expense incurred)Oct 18 Accounts Payable250Inventory£250(To record furniture returned on account)Oct 21 Bank800Rent Revenue800(To record rent revenue earned)Oct 23 Accounts Receivable300Cash£1,800Sales Revenue£2,100(To record sales revenue earned on account)Oct 23 Cash700Sales Revenue700(To record sales revenue earned in cash)Oct 24 LaptopBank1,700£1,700(To record Laptop Purchased)Oct 26 Wages Expense820Bank£820(To record wages expense incurred)Oct 30Rent Expense£850Bank850(To record rent expense incurred)Oct 31 Hotel ExpenseCash£1,2001,200(To record hotel expense incurred)Oct 31Cash150Accounts Receivable150(To record amount received on account)Oct 31Cost of Goods Sold£4,830Inventory4,830(To record cost of Goods sold incurred)The ratios for Anne's business for October 2021 are as calculated below -Net ProfitGross ProfitCurrentAcid TestAccountsAccountsMarginMarginRatioRatioreceivablepayablecollectionрaymentperiodperiodYear 2021-0.250.143.083.011. Calculate the Accounts Receivable Collection Period & Accounts Payable Payment Period based on the data givenabove

Accounts receivable collection period = 365 x Average Accounts receivable…

Answered: 1. Calculate the Accounts Receivable…

Business

Accounting

1. Calculate the Accounts Receivable Collection Period & Accounts Payable Payment Period based on the data given above

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 48E

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